A report from Everest Group called "The Procurement Outsourcing Annual Report 2014: Expanding New Horizons showed that in 2013" predicted a 10-12 percent growth in the procurement outsourcing market this year. The report also found a 12-percent year-on-year growth for the market last year, where managed spending reached $254 billion and a total of $2 billion in annualized contract value were recorded.
Everest Group explained in a statement that the market is in an unstable state where not only a large number of new deal signings are seen, but terminations as well. The organization also added that switching service providers could be causing this unclear activity.
Cost savings and spend reduction remain as the key drivers in the procurement market, but clients are also interested in new offerings and opportunities presented to them by service providers. Some of these are high-valued expertise, technological innovation, and process alignment.
Moreover, Everest said procurement outsourcing is evolving as merger activities with finance and accounting were seen, as well as higher collaboration activity with human resources.